Why Teach Financial Literacy ?

Image from Pixabay

Today we live in times of greater and faster change than these men did. I suspect there will be many booms and busts in the coming years that will parallel the ups and downs these men faced. I am concerned that too many people are too focused on money and not on their greatest wealth, their education. If people are prepared to be flexible, keep an open mind and learn, they will grow richer and richer despite tough changes. If they think money will solve problems, they will have a rough ride.

Intelligence solves problems and produces money. Money without financial intelligence is money soon gone.Most people fail to realize that in life, it’s not how much money you make. It’s how much money you keep. We’ve all heard stories of lottery winners who are poor, then suddenly rich, and then poor again. They win millions, yet are soon back where they started. Or stories of professional athletes, who at the age of 24 are earning millions, but are sleeping under a bridge 10 years later. One of the most important principles, that one should follow to become rich, and most importantly to remain rich is You must know the difference between an asset and a liability, and buy assets. The Rich people acquire assets. The poor ones acquire liabilities that they think are assets.

Image from Pixabay.

Because students leave school without financial skills, millions of educated people pursue their profession successfully, but later find themselves struggling financially. They work harder but don’t get ahead. What is missing from their education is not how to make money, but how to manage money. It’s called financial aptitude—what you do with the money once you make it, how to keep people from taking it from you, how to keep it longer, and how to make that money work hard for you. Most people don’t understand why they struggle financially because they don’t understand cash flow. These people often work harder than they need to because they learned how to work hard, but not how to have their money work hard for them.

A person can be highly educated, professionally successful, and financially illiterate. This pattern of treating your home as an investment, and the philosophy that a pay raise means you can buy a larger home or spend more, is the foundation of today’s debt-ridden society. Increased spending throws families into greater debt and into more financial uncertainty, even though they may be advancing in their jobs and receiving raises on a regular basis. This is high-risk living caused by weak financial education.

Hence, it is necessary that for the betterment and flourishing of the Indian Economy in the future, its citizen be financially literate.